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Project Waves: Swapping Sats on Liquid

Waves

"You can't stop the waves, but you can learn to surf.", Jon Kabat-Zinn

COMIT's vision is to have an open financial system - truly inclusive, censorship resistant and non-discriminatory. And we believe that Bitcoin is the most promising platform for such an open financial system due to its decentralization and its censorship resistance. 

Ultimately we would love to see such an open financial system be built on top of Bitcoin, however, as of today, Bitcoin lacks privacy and only supports a single asset (BTC).

As mentioned in Project Droplet, we believe that Liquid is such a platform allowing us to build a financial ecosystem around Bitcoin. We see the possibility to build products such as lending and borrowing, prediction markets (option/futures) and even saving products. All of these share a basic building block: trading.

Swapping Sats on Liquid

In the following weeks we will focus on that building block and implement an atomic swap solution to allow traders to trustlessly buy or sell L-BTC for L-USDT on Liquid. In the first version we will focus on a single maker approach, i.e. there is one Liquidity Provider (LP) you have to connect to, who will offer you a rate. You can then trade against them.

In a follow-up version we plan to evolve this tool to a peer-to-peer trading solution which allows you to connect to multiple LPs at the same time and even create your own orders. 

We created a simple mock-up and would love to hear your feedback: Figma Mockup

Mock

If you want to hear more, feel free to reach out to us: 

Cheers, Philipp, Lucas and Thomas (and the rest of COMIT)

References

Confidential Atomic Swaps on Liquid

A droplet is a small column of liquid, bounded completely or almost completely by free surfaces.

COMIT's mission is to have an open financial system - truly inclusive, censorship resistant and non-discriminatory. Such a financial system has to allow for exchange of funds between different market participants such as investors, lenders and borrowers in a trustless manner. Liquid [1] seems to be a promising platform for such marketplaces as it has built-in support for different assets in a single transaction while keeping amounts, addresses and assets confidential. These features used in combination allow us to create trustless and private atomic swaps, trustless loans and other financial products.

Confidential Atomic Swaps on Liquid

We are kicking-off a new project to look into Liquid's transaction format which would allow us to do true atomic swaps between two assets. This would allow us to have true trustless BTC/USD (using L-BTC and L-USDT) while all amounts, assets and addresses are confidential. This is huge as it is one step closer to a truly trustless and censorship resistant financial system.

If deemed useful, this might be the start of a longer series of R&D projects focusing on Blockstream's sidechain Liquid.